Republican activists had triggered the recall vote - the first in 82 years - following frustration at the state's $38bn budget deficit, high levels of unemployment and struggling schools.

The BBC's Justin Webb says the people who voted for Mr Schwarzenegger will soon want to see concrete policies and results from the new governor who has been short on detail and "big" on promises.

Excitement

In a two-part ballot, voters were asked if they wanted to recall, or sack, Governor Davis.

Regardless of their decision on the recall, they also had to indicate who they preferred among the 135 alternative candidates running.

With 96.8% of the results in, 54.4% wanted a recall against 45.6% opposing it.

Mr Schwarzenegger was running ahead with 47.9% support - his closest rival, Lieutenant Governor Cruz Bustamante, a Democrat, was on 32.4%.

"Today California has given me the greatest thing of all, you have given me your trust by voting for me," Mr Schwarzenegger said, acknowledging victory.

Tomorrow the real work begins, said the new governor, who has been astute in not promising very much of anything during the campaign, says the BBC's North American business correspondent, Stephen Evans.

He has not formally ruled out tax rises even as he made the right political noises against them, our correspondent says.

That leaves the way open for him to follow Ronald Reagan who raised taxes twice when he was governor of California.